How does my mortgage affect letting my house out?
March 14, 2008 by admin
Filed under Questions and Answers
Spunkfight asked:
I have an interest only mortgage with my mortgage lender but I would now like to let my house out.
I have an interest only mortgage with my mortgage lender but I would now like to let my house out.
I have been advised that if I let my house out I am obliged to let my mortgage provider know.
I don’t know what the repercussions of this would be if I did or didn’t tell them. How would they find out if I just let it out anyway? What would they do if they ever found out? If I meet their mortgage repayments they shouldn’t have a problem, should they?
Can anyone enlighten me on these matters?
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Serge M on Sun, 16th Mar 2008 12:42 pm
If your mortgage agreement states that you must notify the lender if you rent your house, then you must do so or you are violating the agreement. If you are in violation, the lender may demand repayment of the debt. If the agreement is silent on the matter, you are free to let your house with no repercussions. Naturally, you still have to satisfy your mortgage payments. Read your mortgage contract to find out what it says about the matter.